Net sales for the thirteen weeks increased 11% to $79.6 million driven by 87 new boutique openings since the prior year quarter. Performance was strongest in accessories, outpacing increases in apparel and jewelry, and a decline in gifts.
Comparable sales, including direct-to-consumer sales, decreased 3%, as compared to a 17% increase in the prior year quarter. Comparable transactions decreased 3%, with a flat average transaction size. Direct-to-consumer sales increased 87% versus the prior year quarter driven by increases in site traffic, conversion rates, and average transaction values.
Ten new boutiques were opened during the third quarter bringing new openings for the year to date to 86. We expect an additional five boutique openings in the fourth quarter bringing the full year to 91.
Gross profit, as a percentage of net sales, decreased to 50.7% compared to 52.6% in the prior year quarter. This decrease was due to 160 basis points of deleveraging of fixed occupancy costs and 30 basis points of lower merchandise margins. Decrease in margin was due to elevated markdowns compared to the prior year quarter.
Selling, general and administrative expenses increased 28% to $25.8 million from $20.1 million in the prior year quarter. As a percentage of net sales, selling, general and administrative expense increased 440 basis points to 32.4% compared to 28.0% in the prior year quarter.
This increase was primarily due to higher payroll expenses associated with expansion of the field leadership structure for the long-term and those needed to support the additional number of boutiques in operation during the third quarter.
Selling, general and administrative expenses for the third quarter 2012 include a pre-tax charge of $342,000 related to the relocation of our headquarters and distribution facilities. Excluding this charge, adjusted selling, general and administrative expenses for the third quarter 2012 were $19.8 million, or 27.5% of net sales.
Income from operations for the quarter decreased 18% to $14.6 million or 18.3% of net sales compared to $17.7 million or 24.6% of net sales in the prior year quarter. Excluding the aforementioned relocation charge, adjusted income from operations for the third quarter 2012 was $18.1 million, or 25.1% of net sales.
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